Argentine President Javier Miley , who came to power in 2023 with a promise to "chainsaw" public spending and end decades of economic decline, is facing a decline in popularity as congressional elections approach, The Times reports .
On October 25, Argentina will hold midterm parliamentary elections, electing half of the members of the lower house of Congress (the National Assembly) and a third of the senators. This vote will be a key test for Milei and will determine whether he retains popular support.
In the municipal elections, Mileya's party, La Libertad Avanza (Freedom Advances), garnered only 34% of the vote, compared to 47% for the Peronist Alliance. According to The Times, this defeat was a worrying sign for the president, who hopes to secure at least a third of the seats in parliament to maintain his veto over opposition decisions.
Despite inflation falling from 200% to 30% and the first balanced budget in 14 years, the country's economy remains unstable. Wages are stagnant, consumer spending is falling, and the peso continues to depreciate, the publication writes.
To support the national currency, the government is spending billions from its reserves. Last week, the US offered Argentina a $20 billion currency swap line, and Treasury Secretary Scott Bessent called Miley "a beacon for South America." However, even this support failed to stabilize the situation – the peso fell to a historic low.
Economists surveyed by The Times warn that the "shock therapy" programme, which includes ministry closures, mass layoffs and cuts to social spending, could lead to stagnation if the government fails to restore public confidence.
